UK Government accused of neglect after refusing to extend rural fuel duty scheme to Wales

The UK Government has been accused of neglecting rural communities in Wales after refusing to extend a scheme which helps lower the cost of petrol in remote areas of England and Scotland.

The Rural Fuel Duty Relief Scheme currently applies to 21 areas, where fuel retailers can apply for relief of 5p per litre of petrol or diesel, which is then passed on to consumers through reductions in prices at the pump.

Research has confirmed that people living in rural areas spend an average of £800 more on fuel a year than those in urban areas and have far fewer public transport options, if any.

Confirmation that the scheme won’t be rolled out to Wales follows a question from Welsh Liberal Democrat MP for Brecon, Radnor and Cwm Tawe David Chadwick.

Extended

During last year’s general election, the Liberal Democrats called for the scheme to be extended to 20 new areas, including rural parts of Wales including Powys, Carmarthenshire, Ceredigion and Gwynedd.

The Liberal Democrats have also backed the introduction of a Pumpwatch scheme, which would allow consumers to compare fuel prices in real-time and guard against unfair mark-ups.

A similar initiative in Northern Ireland, where fuel is cheapest in the United Kingdom, has already proven effective.

Remoteness

In a letter responding to Mr Chadwick, Treasury Secretary James Murray MP, wrote: “The Rural Fuel Duty Relief Scheme was introduced to provide a 5p reduction tomotorists buying fuel in certain areas.

“The areas included in the scheme demonstrate certain characteristics such as: pump prices much higher than the UK average; remoteness leading to high fuel transport costs from refinery to filling station; and relatively low sales meaning that retailers cannot benefit from bulk discounts.

“There are currently no plans to make changes to the areas covered by the scheme.

“The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.”

Mr Chadwick said: “People in rural areas have been clobbered by the cost-of-living crisis. Now the new UK Labour administration is continuing the legacy of neglect of rural areas and Wales that we saw under the Conservatives.

“By refusing to extend the scheme to Wales, they are showing they simply don’t care about the struggles of rural communities.

“It’s also disappointing they have so far failed to introduce a pump watch scheme. I know in towns across my constituency price gouging is a real issue.

“Labour must do better and stop treating Wales as an afterthought compared to Scotland and England.”